Has the SAP Authentication configured. Are you able to login to Launch pad with SAP Details?
Find the lsi folder:
%Documents and Settings\<useraccount>\Application Data\SAP
BusinessObjects\SAP BusinessObjects Enterprise XI 4.0\lsi
Take the backup of all the files in that directory
now Delete all the files/folders in the directory.
Re launch the IDT.
Give user name as : SAPSYSTEM~CLINET/SAPID Ex( HXY~300/53560)
Pwd will be SAP PWD
Authentication is SAP.